Welcome to the first edition of the Focus Technology Group Quarterly News Letter “In Focus”. My staff and I look forward to informative, participative communication with our many product users. Back copies of the News Letter will be posted on the FTG Web site, www.FocusTechnologyGroup.com.

What can you expect to see? Our professional staff will share its knowledge and expertise with you and welcome your responses both positive and instructive. Articles on FTG technology advancements, FTG product enhancements, product services, our growing technical contract services, and evolving outsource services will be highlighted. We will give particular attention to the growing importance of our enterprise wide, holistic fraud prevention, fraud detection, anti-money laundering, and PATRIOT Act compliance solutions. For example, our real-time teller transaction analysis and real-time Positive Pay

fraud detection p r o d u c t s are already functioning within

two core systems. You will receive updates about upcoming events: - the venues and forums where we have been invited to show our products, speak, teach, and contribute industry wide articles. We will provide real life stories about fraud and the use of our products to aid in protecting bank assets.

It seems almost impossible that it has been 22 years since I founded a software company that has consistently provided the highest quality fraud prevention, fraud detection and audit software to the banking industry. Our concept is “living software” that is constantly changing, updating and growing to meet ever more complicated and demanding needs. We at Focus Technology Group pride ourselves on our “made in the USA” products, our proactive user-centric customer support, and our ability to recognize and rapidly meet new technology and regulatory requirements. Our staff continues to advance in its professionalism earning six professional accreditations, including CAMS, CFE, and CFS during the past 12 months.

SURVEY RESULTS:

I can report with great pleasure that 100% of our users who responded to our recent customer satisfaction survey said they would recommend our products to other financial institutions.

When users were asked what they liked

best about our products, typical answers included:

RESPONSE TO USER REQUEST:

Earlier this year, users requested that we add more fields to BancAuditTM

and allow analysis by customer. We responded by adding over 1,400 fields and by providing customer-based analysis in BancAudit-Pro upgrade. As a bonus, we also provided new routines to assist in detecting identity theft and other types of fraud through the addition of employee inquiry monitoring and CIF maintenance analysis tools.

FTG’s products and services are used by many functions within financial institutions and (cont. pg 2)

InFocus Newsletter Oct. 2007

*Charles Thiel, President and CEO

“Customer service is excellent”•“Very knowledgeable technical •staff”“Excellent report results”•“Ease of use”•“Minimal IT time for installation”•

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Our Enterprise-wide Financial Crime Platform, an open solution that uses a single database for all fraud analytics, management analysis, and SAR reporting, continues to be enhanced and upgraded.

We hope you find our articles interesting and informative. If you would like more information, a live discussion with one of our professionals, a WebEx product demonstration, or a product presentation in your bank, please email or call us. We hope to include you in Web-based strategic action meetings and to invite and encourage you to serve on our focus committees.

I want to thank our customers across all banking systems for their continued support and participation in advancing FTG products.

Charles Thiel, President and CEO

we recognize that a general forum for education and information sharing is important. Products designed to meet a specific need or designed for one function, e.g., auditing or compliance, are being creatively used for a broad spectrum of solutions. BancAuditTM, in addition to being used by auditors to support requirements for asset protection, is being used extensively in operating areas and by management for customized reporting, letter and notice creation, errors and omissions analysis, detection of identity theft, and to identify employees stealing customer information. To illustrate, a bank we trained a few months ago included over 20 attendees, only four of whom were auditors.

FTG USER BASE

With 186 banks and 347 products installed across six core banking systems and a few non banking customers such as Saving Bank Life Insurance Company, FTG can easily count its user base in the thousands. During the past 24 months, FTG has installed over 100 products in financial institutions ranging in size from de Novo to $25 billion. Our enterprise wide Financial Crime Platform has been installed on two new core systems. This brings to six the number of major core system providers whose customers can expect rapid implementation of FTG ‘Windows’ solutions and AS/400 products.

New developments and enhancements continue at a rapid pace with improved quality control testing.

Two new products that are discussed in more detail:

FRAUD WIZARDTM

Fraud WizardTM is an alert-centric, employee/insider fraud detection software solution that is without equal in the financial industry. Event monitoring alerts that identify fraud schemes and anomalies leading to fraud are delivered with Fraud WizardTM. Over 20 years of real fraud cases and experiences have gone into this product. No more wading through reams of reports trying to uncover possible employee fraud or account manipulation of various types.

AUTORISKTM

AutoRiskTM is a solution that automates risk ratings for existing and new customers, continuously monitors transactions for risk rating changes, updates CIF and audits new customers.

InFocus Newsletter Oct. 2007

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Focus Technology Group’s sales - through September 2007 - of its Open Solution Windows products for detection and prevention of Money Laun-dering and Check and Deposit Fraud increased 89% over2005totalsales.FTG’s2006salesconfirmedthe importance of Fraud Detection and Prevention Products with sales of Anti-Money Laundering, Check and Deposit Fraud, and Internal Fraud Detection Products reaching record levels with 46 sales during 2006; a 30% increase over 2005.

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InFocus Newsletter Oct. 2007

Fraud WizardTM is the most contemporary and comprehensive solution for preventing and detecting insider/employee fraud and this newsletter is an excellent forum for outlining Fraud Wizard’s features and functions. The product is based on over 20 years of real-life employee/insider and external fraud experiences and is supported by a U.S.-based professional staff with CFE, CFS and CIA accreditations.

Fraud WizardTM monitors all transaction activity on an account including maintenance changes to deposits, loans and your Customer Information File (CIF). It automatically recognizes unusual and complex suspect account activity patterns and prioritizes fraud probabilities. A few examples help illustrate this:

An account is dormant or has almost reached dormant •status and one or more transactions occur over a 30-60 dayperiodthatreflectssuspiciousandout-of-patternactivity. This could include a change in the account’s alternate address, a change in phone number or other suspect CIF changes that are also associated with a series of withdrawals that reduce the account balance by a certain percentage or dollar amount.AnaccounthasacombinationofchangestoLoanfields•andtransactionsthatreflectanattempttokeepanaccount out of delinquency status, to hide an internal lapping scheme or perpetrate a variety of loan frauds. Fields monitored would include changes to Next Pay-ment Due Date, Payment Frequency, Grace Period for a Delinquent Notice and withdrawals from the Unapplied BalanceFieldorotherbalancefieldstofundprincipalpayments.

Fraud WizardTM is delivered with fraud detection scenarios al-ready built and ready for launching. Suspicious and unusual activity is red flagged and users are notified via prioritizedalerts and optional reports. False positives are minimized.

Over the last few months, FTG has integrated its Windows products to two additional core system vendors: OSI and Fidelity. Database integrations speed installation and fa-cilitate enhancements. Additional core system integrations are underway.

FTG ‘Windows’ products are truly holistic. They function off the same database feed and include ML Shield™ for anti-money laundering, Fraud Shield™ for check and deposit fraud and Fraud Wizard™ for prevention and detection of insider/employee fraud. Together they form the FTG Financial Crime Platform. The three products may be licensed separately or together, are highly scalable, and may be used centrally in the bank or by Audit, Compliance, and Security departments seperately.

A teller makes unusual patterns of small cash deposits •tohisaccount,possiblyreflectingthetheftofoveragesfrom his cash drawer.Flip/flopmailingaddresschangesoccuronanaccount•overa60-dayperiodreflectingpossiblemisdirectionofa DDA statement.Multiple backdated deposits occur on an account, which •clearly represent a kite being hidden through employee manipulation of transaction dating.

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InFocus Newsletter Oct. 2007

Fraud WizardTM

In 2006, FTG’s suspicions were confirmed that employee/insider fraud losses to banks far exceeded those due to check and deposit fraud. Independent studies completed by the ABA, the BAI and Tower Group came to the same conclusion – 65% to 70% of fraud dollar losses in banks are due to employee/insider fraud.

FTG reacted immediately to these startling statistics. Drawing on over 20 years of real life experience, existing analytical tools, and our extensive research library, we developed Fraud WizardTM iSeries, the groundbreaking solution for detecting employee/insider fraud. Fraud WizardTM is a departure from the traditional report centric type of product. It is alert centric. This means it detects suspicious database information, analyzes combinations of complex events, prioritizes fraud probability, and provides results in an on line format. There is no more wading through reams of reports trying to detect anomalies and combinations of events representing possible employee/insider fraud.

Fraud WizardTM has been completed and is scheduled for beta testing at a participating bank. We will be providing more information about this exciting product in the very near future.

AutoCTRTM is an interfaced, iSeries resident system that automatically aggregates CTR transactions for electronic transmission to FinCEN. With AutoCTR, operational research and processing time is significantly reduced. System features also include:

• Automaticexemptionhandling

• Detailedreportingforauditandresearch

• Errorandomissioncontrols

• Automatic‘house-holding’toidentifyhiddenCTR

relationships

Fraud ShieldTM real-time transaction and Positive Pay file analysis, now includes an additional module that allows real-time transaction and Positive Pay file analysis to

detect fraudulent and unauthorized transactions at the teller line. The system sends alert messages from the core system to the teller for real-time validation and fraud prevention. The validation process for real-time check and check deposit fraud prevention includes the following routines:

• Duplicatechecknumber• Checknumberoutofrange• Overaveragewithdrawal• Overaveragedeposit• Maximumbranchactivitythresholdexceeded

If your financial institution provides a Positive Pay service,FraudShieldcanbeconfigured to return the followingmes-sages to the teller for Positive Pay transaction validation:• Checknotfoundonthisaccount• Checkvoided• Checkhasalreadybeenpaid• CheckamountdoesnotmatchPositivePayamount

Focus Technology Group recognizes the importance of creating software respecting the needs of the Fi-nancial Institution Data Processing Department. FTG Integrated Products are secured at the institution, in-dividual user, and product function levels. BankAudit-Pro allows IT control of priority and time slice and to prohibit interactive running. BancAudit-Pro routines can be used to clean up CIF, and the product allows daily replacement of data marts. ML Shield features ‘Automatic Scheduling’ which automates running of ML Shield updates and on line reports after daily up-date to avoid scheduling problems.

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InFocus Newsletter Oct. 2007

Product Services delivers unparalleled product support and services to you, our valued cus-tomer. We understand that it is reliable service and expert banking knowledge that sets one apart from the competition.

And as ever-changing technology and banking regulations lead Focus Technology Group in new and exciting directions, Product Services’ core responsibilities to you will remain as fol-lows:

1) Provide expert BSA, fraud prevention and auditing products and consultation services;2) Manage the design and development of customized solutions to meet your institution’s specialized needs;

3)Deliverhighlyefficientandeffectiveproductimplementationandtraining; 4) Foster and maintain a productive and solutions-based business relationship with your financialinstitution.

Whether iSeries or Windows-based technology, fraud detection or BSA compliance, the Product Services group believes in following a simple model - listen, develop, deliver, improve. It is our goal to adhere to this model and provide you with knowl-edge and systems that you can depend on.

So, continue to share your ideas with us and provide us with feedback. We intend to keep listening and delivering and we look forward to working with you into 2008 and beyond.

John Kelliher, CAMS, Director of Product Services

Focus Technology Group is fortunate to have Kori Feener on staff to supervise the InFocus News Letter technical require-ments. Kori is a graduate of the University of Tampa, Florida, majoring in Film and Media Arts.

Sheiscurrentlyusingherfilmeditorskillsonbehalfofafellowhighschoolgraduateseverelyinjuredinanaccident.Youmayview her trailer at http://myspacetv.com/index.cfm?fuseaction=vids.individual&videoid=15870395. (Video only plays with newest version of Adobe Flash Player)

Kori doubles as FTG’s Administrative Assistant. Most of the time, the voice you hear when calling FTG is hers.

Kim Garbino, FTG Inside Sales Executive, is a friendly voice and a fast response to customer inquiries with accurate and timely information. Whether you have questions, need product lit-erature, a product WebEx demonstration or complex quotations to meet budgeting deadlines, Kim does it all with a smile and a friendly word.

Kim joined FTG in 1994 as Administrative Assistant and after a series promotions took over Inside Sales in 2005.

Most of you know Kim. For those who haven’t had the chance to talk with her, feel free to call, email her, say hi, ask what’s new, and let Kim welcome you to the FTG user family.

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InFocus Newsletter Oct. 2007

Focus Technology Group is currently marketing its Financial Crime Platform on iSeries and Windows platforms. Excitement over our enhancements and new products: - Fraud Wizard, AutoRisk, Real Time Positive Pay Fraud Detection, and Fraud Shield Real Time Teller, is growing as these products test well and are installed. The BancAudit-Pro upgrade enjoys interest from most of our BancAudit users and will replace the current BancAudit for new users.

FTG demonstrated its Financial Crime Platform with emphasis on ‘Centralized Fraud Control with De-centralized Analysis’ at both the ABA and BAI fall Conferences.

ABA Anti-Money Laundering Enfcorcement Conference The 2007 American Bankers Asso-ciation / American Bar Association Anti-Money Laundering Enforcement Conference was held in October in Washington DC. Attendees heard recent compliance updates from James H. Freis, Director of FinCEN.

BAI Retail Delivery Conference & ExpoThe Bank Administration Institute’s (BAI) annual Retail Delivery Confer-ence and Expo was held in Las Vegas in November. Alan Greenspan, Feder-al Reserve Chairman (1987 – 2006) was this year’s lead speaker. Other speakers included Steve Forbes Jr., President and CEO of Forbes and Editor-in-Chief of Forbes Magazine; Lynn Pike, President Capital One Bank; and Kerry Killinger, Chairman and CEO of Washington Mutual.

BAI’s Retail Delivery conference and expo focuses on the technology and services re-quiredtorunasuccessfulfinancialinstitutionand highlights current and anticipated trends affecting the industry. The Expo attracts top core system providers, hardware vendors, and third party suppliers. Attendees are primar-ilyfinancialinstitutionseniormanagementinretail, operations, and technology.

This years topics included ‘Capitalizing on the Customer’ emphasizing the booming retire-ment market, ‘Human Capital’ covering inter institution career development, optimal work environments, and other ideas for retaining valued employees, and ‘Customer Risk’ fea-turing Zions Bancorporation in a case study on combating fraud loses.

Published ArticlesFocus Technology Group Executives write for the Association of Certified Anti MoneyLaundering Specialist – ACAMS - publication ‘ACAMS Today’.

‘Suspicious Activity Monitoring: How to Effectively Use a Transaction Monitoring System’ January/February

‘Generating a Dynamic Customer Risk Rating” March/April

‘Fighting Financial Fraud Requires Enterprise-Wide Analysis and Controls’ May/June

‘Credit Unions: Risk and Opportunity in a Changing Environment’ September/October

NEW WEB SITEwww.FocusTechnologyGroup.com has a new look! The new site is easier to navigate and

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includes updated information on ‘What’s Hot’, articles written by FTG staff, news items, events where FTG products will be presented, FTG com-pany history, the FTG management team, as well as our latest product news. Drop down menus guide the navigator. The new site will be con-stantly updated with company and product news. Additional web site features are planned.

Take a look at the new site and email your comments. We look forward toyour ideas as we contine to improvewww.FocusTechnologyGroup.com .

FTG presented its solutions at the following Shows and Meetings dur-ing 2007:

OSI Annual Meeting AprilMiser Annual Users Group April CBS Worldwide Users Group March CBS Northeast Users Meeting June Raddon CEO Director’s Forum August PIP September CBS Central Users OctoberCBS Western Users OctoberABA AML Enforcement OctoberCBS Central Users October CBS Western Users October BAI Retail Delivery November

Janet Dickson, SVP Marketing